Target: Rs 4,560
Stop Loss: Rs 4,040
SCHAEFFLER is currently trading at Rs 4,213.90 and remains firmly positioned in a long-term uptrend. On the daily chart, the stock is forming a Flag and Pole pattern — a bullish continuation setup that suggests the potential for a fresh upward move once the consolidation phase concludes. With recent price action, the stock is now on the verge of breaking out of this pattern, backed by the formation of a strong bullish candle on the daily timeframe.
Notably, trading volumes have remained consistently healthy, lending further credibility to the ongoing accumulation and reinforcing bullish sentiment around the stock. A sustained breakout above the flag resistance could confirm the pattern and set the stage for a rally toward the Rs 4,560 level in the near term.
Momentum indicators are also favoring the bullish outlook. The Relative Strength Index (RSI) stands at 70.37, reflecting strong momentum and signaling the possibility of a positive crossover, which may attract further buying interest. Additionally, SCHAEFFLER is trading above all its key moving averages — including the short-term, medium-term, and long-term EMAs — underlining its strong technical structure across timeframes.
(Hardik Matalia, Derivative Analyst, Choice Broking)
